Buying a Business in Texas
Buying a business can yield great profits in the future. However, individuals and companies looking to buy businesses should be aware of the complications of the transaction.
There are Federal and Texas laws concerning mergers, acquisitions, negotiations and securities exchange that may impact the purchase of a business.
What Parts of the Business Am I Buying?
If a party wants to direct business operations, the best way is to acquire a right called "control". With control of a business, the party acquires all assets and the customer base of the business, plus it also assumed the company's debts. To balance the positives and negatives, the party buying a business must get a complete picture of the financial position of the business. Through a process called "due diligence", a buyer gains this understanding. The process of due diligence uses Federal and Texas guidelines to protect both parties. If these guidelines are not followed, a party may be found in breach of a legal duty. However, due diligence will lead to a better informed decision concerning whether you want to buy the business. Also, it will help the business to transition more smoothly to new ownership.
How Much Will the Business Cost?
The price of a business mostly depends on how much ownership stake is required for control. The value of the business property and the type of business are also important factors. The process for how the right of control can be transferred or modified is defined by specific laws in Texas. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Corpus Christi Attorney Help?
In Texas, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in Texas law practicing in Corpus Christi can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.